Markets move down!

Stocks fall

Pressure appears to be building as the stock market bull run falters. Major indices have given up gains and moved away from lofty highs. The DOW, S&P 500 and Nasdaq all closed down – each losing around 1% on Wednesday, 18th August 2021. The FTSE 100 and DAX, Nikkei and Hang-Seng all lost ground too. U.S. markets down U.S. markets % change Value Change Dow Jones – closed at -1.08% 34960 -383 Nasdaq – closed at -0.89% 14526 -130 S&P 50 – closed at -1.07% 4400 -48 U.S. Markets closed…

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One minute the virus isn’t a problem, when it is – then it is a problem, when it isn’t! What the hell? (As far as the stock market is concerned)

Fearful

Stocks tumble on delta variant fears Stock markets took a hit Monday 19th July 2021, as the headlines read, ‘Dow tumbles 900 points on concern of a Covid rebound‘. Is Covid entirely to blame for this fall? No, not entirely. Fickle highs? So, why now, after all – the virus hasn’t bothered stocks since the massive fall in March 2020 – as stock momentum and economic recovery went into overdrive and pushed the Dow, S&P 500 and Nasdaq to new record highs. U.S. stocks fell aggressively Monday on concern a…

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Asia stocks lower as global recovery slows and Covid cases climb

Pandemic and the economy

Asia stocks lower Shares were mostly lower in Asia on Friday after U.S. stocks struggled amid uncertainty over rising Covid-19 cases and new risks appearing. Nikkei index closed down at: 28000 a drop of around 276 points On Thursday, U.S. stock indexes closed mostly down from recent highs. Asia stocks followed suit amid a rise in pandemic cases slowing global economic growth. Some 111 countries now have the delta variant as the prominent strain. U.S. indices The S&P 500 closed down at: 4360 The index may now show its first…

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Fed stress tests U.S. banks & Wall Street mini-rally

Federal Reserve

Stress test The Federal Reserve warned that in a worst case scenario, some banks reserve capital would fall close to minimum capital requirements, with lenders subjected to loan losses of up to $700 billion. The central bank directed 33 of the largest U.S. banks to suspend share buybacks and cap dividend payments. Bank shares including , J P Morgan Chase, Goldman Sachs and Wells Fargo all fell in extended trade after hours, all three having rallied during the normal trading session ahead of the results. So, all the banks have,…

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Gold gains ground as stocks stagnate

Gold

Gold is a clear winner from the pandemic Gold was initially sold off in February and during the early part of March. But since then gold has made substantial progress from the March lows, mostly due to central bank stimulus activity. Gold was around $1775.00 as of Wednesday 24th June. Stocks fall flat After a strong bounce on Tuesday 23rd, European markets opened lower Wednesday 24th June, with the FTSE 100 slipping back under 6,300. The DAX was also weaker and broke down through support at 12,400. The Dow is…

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Markets appear unfazed as coronavirus cases surge…

Coronavirus

Cases increase Coronavirus cases are reported to have surged in Brazil, U.S. and India, and increase again in Germany. Investors appear to be unfazed by this as they attempt shake off concerns and focus on the ‘expected’ economic recovery. Worldwide, governments continue to move ahead with the re-oping of their respective economies. A surge in coronavirus cases was recorded in the U.S., Brazil and India. Germany has seen its ‘R’ rate rise to 2.88 over the weekend – that means for every 100 people who contract the disease – a further…

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Fed fires up, again

Central Bank Stimulus

More stimulus The U.S. Federal Reserve announced it would start buying individual corporate bonds. The Fed said, ‘it will purchase corporate bonds to create a corporate bond portfolio’. The Federal Reserve is stepping things up again after recent comments left investors more than a little concerned about the pace of recovery. The Fed has stated that it remains concerned about the economy suffering a protracted downturn and the latest endeavour is to start the purchase of corporate bonds. Monetary and fiscal stimulus riding to the rescue again.  Encouraging news Investors…

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UK GDP crash, economy suffers 20% contraction in April

UK GDP

Shocking but no surprise! The UK economy shrank by a record 20.4% in April 2020 due to the damaging affects of lockdown. The monthly decline was outlined in figures reported by the Office for National Statistics (ONS). The GDP fall is three times greater than the decline seen during the whole of the 2008/2009 financial crisis, and is the biggest GDP fall ever recorded in the UK. The ONS also published figures for the three months February to April, which showed a decline of 10.4%. Almost all areas of the…

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UK national debt soars

Historic debt level

Doom and gloom? The Organisation for Economic Co-operation and Development, (OECD), has warned that the effects of the pandemic will be far reaching and will likely hit the UK harder than other comparable major economies. As the OECD reports of a very slow and difficult recovery for the UK, we are also reminded that UK debt has now reached historic levels. The World Bank and the IMF have voiced their opinions about debt too. And not wishing to be left out of the doom and gloom discussion, the CBI inform…

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Stocks are up, so all is okay…?

Popping the balloon

So, stocks are up and that means all is okay – no I don’t think so. These big stock market bets on economies re-opening quickly and going back to ‘normal’ are likely lulling us in to a false sense of security. We want it to be good again, of course we do. But let’s fix things properly before we go forward. Betting is not a good solution. As the Dow reclaims 27000 and goes even higher and as many world indices climb back close to or above their pre-coronavirus levels,…

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